Nifty 50 Tanks 170 Points as Market Sentiment Weakens; BEL, ONGC Defy Trend

Mumbai, June 13, 2025: The Nifty 50 index slumped sharply on Thursday, falling by 169.60 points or 0.68%, settling at 24,718.60. Persistent selling across banking, auto, and FMCG sectors weighed on market sentiment, pushing the benchmark lower throughout the session. Out of the 50 constituent stocks, 38 declined, only 11 managed to gain, and 1 remained unchanged, indicating a dominant bearish undertone.

Nifty 50 Index Overview

The index opened flat at 24,473 and remained under selling pressure through the session. It touched a high of 24,754.35 but failed to sustain upward momentum, slipping back toward its opening level. The day saw a total traded turnover of ₹2.48 lakh crore, spread across 318.7 million shares.

Sectoral Highlights and Stock Performance

Despite the broad market decline, a few heavyweights managed to post gains:

Top Gainers (By % Change)

Top Losers (by % Change)

Major banks weighed heavily on the index, with HDFC Bank slipping 1.23%, ICICI Bank falling 0.53%, and Kotak Mahindra Bank declining 0.98%. Auto counters such as Bajaj Auto (-0.99%) and Tata Motors (-0.22%) also faced selling pressure.

Advance-Decline Summary (Nifty 50)

Technical and Broader Market Perspective

The index has now dropped 1.26% over the last 30 days but still shows a year-to-date gain of 6.71%. Currently, it trades nearly 5.93% below its 52-week peak of 26,277.35. Thursday’s decline below the prior close of 24,888.20 highlights a sustained selling bias, with financial and FMCG names leading the correction. The inability to maintain the day’s high indicates continued weakness in intraday momentum.

Key Factors Behind Nifty 50’s 170-Point Drop

1. Escalating Middle East Tensions Fuel Risk Aversion

The sudden military escalation in the Middle East, where Israel launched air strikes on Iran’s nuclear and military infrastructure, significantly impacted global investor sentiment. This geopolitical uncertainty led to a widespread shift from equities to safer assets like gold, US Treasuries, and the Swiss franc. Concerns over a broader conflict triggered a sharp reaction in financial markets, dragging down equities across Asia and Europe. This geopolitical flashpoint caused immediate volatility and was a major driver behind the 169-point fall in the Nifty 50.

2. Surge in Crude Oil Prices Raises Inflation Concerns

The most direct economic fallout from the conflict was seen in energy markets. Brent crude prices surged by nearly $8–10 per barrel, briefly trading near $78, marking the steepest single-day gain in over three years. For India, which imports about 85% of its oil, such price spikes fuel inflation and widen the trade deficit. Oil marketing companies like BPCL, HPCL, and IOC fell by 2.5% to 3.5%, as rising crude prices are expected to erode their margins. Additionally, the Nifty Oil & Gas index slipped around 1.3%, reflecting the negative outlook for energy-linked stocks.

3. Heavy Foreign Investor Selling Intensifies Pressure

Foreign Institutional Investors (FIIs) were aggressive sellers in the Indian equity markets, offloading shares worth ₹3,831 crore on June 12. The risk-off sentiment triggered by geopolitical concerns and weakening currency further drove FIIs to reduce exposure to emerging markets like India. In contrast, Domestic Institutional Investors (DIIs) attempted to offset some of the impact, purchasing stocks worth ₹9,394 crore. However, this was not enough to halt the broader market slide, as the volume and breadth of selling remained dominant.

4. Banking Sector Weakness Drags Index

Banking heavyweights were among the biggest drags on the Nifty 50. All 12 constituents of the Nifty Bank index opened lower, led by Kotak Mahindra Bank (-2.6%), Punjab National Bank (-2.4%), Canara Bank (-2.1%), and SBI (-1.57%). The Nifty PSU Bank index dropped by 1.18%, while the private banking index fell nearly 1%. Investor concerns over interest rate risk, treasury losses, and a possible delay in credit growth in a volatile macro environment fueled these declines.

5. Rupee Depreciation and RBI Intervention

The Indian rupee weakened sharply by 49 paise, touching an intraday low of ₹86.20 per US dollar before closing at ₹86.09. This depreciation was largely driven by higher crude prices, which increased dollar demand for oil imports. A weaker rupee also raises the cost of foreign borrowings for companies and may push up imported inflation. The Reserve Bank of India (RBI) was reportedly active in the forex market to limit volatility, but the currency pressure added to the unease among equity investors.

6. Technical Breakdown and Lack of Buying Momentum

From a technical standpoint, the Nifty 50’s drop below its previous close of 24,888.20 confirmed a bearish reversal. The index opened flat, rose briefly to an intraday high of 24,754.35, but failed to hold gains and closed at the day’s low of 24,718.60. This inability to reclaim key resistance levels signalled weak intraday momentum and added to the pessimism. With the index now 5.93% below its 52-week high, market participants turned cautious on further upside potential.

7. Global Cues and Weak Asian Markets Compound Sentiment

Asian peers such as the Hang Seng, Nikkei, and Kospi also witnessed declines between 0.8% to 1.4%, reacting to geopolitical tensions and rising energy prices. Global market weakness, especially in developed economies and crude-importing nations, filtered into Indian equities and amplified local losses. This global synchronisation of risk aversion created a challenging environment for Indian indices to resist the fall.

Near-Term Outlook

Volatility is expected to persist amid shifting sectoral themes and external triggers. Support for the Nifty 50 is anticipated near the 24,500 level, while resistance is likely around 25,000 to 25,200. The market’s next directional move will be shaped by upcoming macroeconomic indicators, fluctuations in crude oil prices, and fresh commentary regarding the government’s policy stance.

Traders should also track the upcoming weekly expiry and potential rebalancing flows in the mid-cap space, which could influence short-term index movements.

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